Inside this simulator
Reconcile a messy year of digital-asset activity into a defensible tax position. You are handed transfers between wallets, exchange trades, a staking reward stream, and a hard fork, and you have to pick and apply a cost-basis method consistently across the lot set.
What you'll do
- Reconcile transactions across multiple wallets and exchange accounts
- Apply FIFO, LIFO, and HIFO to the same lot set and compare realised gain
- Classify staking rewards, airdrops, and fork proceeds correctly
- Identify wash-sale-adjacent behaviour and the reporting boundaries around it
Skills you'll evidence
- Choosing a cost-basis method and defending the choice on consistency grounds
- Separating a non-taxable self-transfer from a taxable disposal
- Producing a lot-level audit trail a preparer can actually work from
Who it's for
Advisors who coordinate with a client's CPA and need to know what a clean digital-asset tax file looks like before January.
Common questions
- Which cost-basis method produces the lowest tax bill?
- HIFO usually minimises current-year realised gain because it disposes of the highest-cost lots first, but it demands complete, per-lot records and consistent application. The exercise shows the same transaction set under FIFO, LIFO, and HIFO so the trade-off between tax outcome and record-keeping burden is visible.
- Are wallet-to-wallet transfers taxable?
- Moving assets between wallets you control is not a disposal, but it frequently gets mis-imported as a sale and a purchase — one of the most common sources of overstated gain in real client files. The reconciliation step in this simulator exists specifically to catch that.
Status: Coming soon.